Question
A Cake company uses 4,746 quart bottles of Chocolate sauce each year. The sauce costs 8 per bottle and is served only in full bottles
A Cake company uses 4,746 quart bottles of Chocolate sauce each year. The sauce costs 8 per bottle and is served only in full bottles for food safety purposes. The company's inventory manager calculated that each time an order is placed, it costs 13 and holding costs are 22 percent of the purchase price. Once the order is placed, it takes 4 weeks for an order to arrive. The company works for 49 weeks per year. The company is considering to use the inventory system techniques which minimizes the inventory cost. Approximately,
how many orders may be placed in a year?
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